Taking the Shortcut with White Label Cannabis Manufacturing
Although cannabis can be a very profitable industry, the barriers to entry for a new business can be daunting. For existing companies, expanding into new product categories requires a heavy financial investment in research and development, new equipment for manufacturing, additional employees to operate it, extra floor space to produce more goods, and an increasingly complex supply chain to support it all. For these reasons and many others, white labeling has become a viable solution in the cannabis market. White label and private label products are far from new concepts, amounting to $158.8 billion in U.S. retail sales in 2020, or about 19.5 percent of the total market . In simple terms, white labeling is when a third-party manufacturers a product to be marketed and sold under another company’s branding. When the other brand is a retailer, it’s usually called a private label product. The go-to example of private labeling for a competitive price is Costco’s line of Kirkland products ...